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TechnipFMC (FTI) Seals EPCI Deal for Jubilee South East Project

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TechnipFMC plc (FTI - Free Report) recently secured a major contract from Tullow Ghana Limited for integrated engineering, procurement, construction and installation (iEPCI) on the Jubilee South East development, located off the coast of Ghana. Jubilee South East is an extension of the Jubilee field. The contract is worth a value between $75 million and $250 million.

The agreement will be TechnipFMC’s first iEPCI project with Tullow Ghana, which will include the delivery and offshore installation of all key subsea equipment comprising manifolds and related controls, flexible risers and flowlines, umbilicals, and subsea structures.

Jonathan Landes, the company’s president in charge of subsea, stated that, “We are proud to continue supporting Tullow Ghana in the development of the Jubilee field. This is the first time Tullow has used our iEPCI™ model, which enables us to collaborate even more closely and simplify project delivery. We will continue to use our Subsea Studio digital solution to optimize the development, execution, and operation of Jubilee South East.”

With the construction of a number of subsea structures including production and water injection manifolds carried out in Ghana, TechnipFMC views this project as a chance to expand its local content.

Last month, TechnipFMC clinched a major EPCI contract from Equinor (EQNR - Free Report) on the Kristin Sør field in North Sea. The company will deliver rigid pipes, static and dynamic umbilicals plus pipeline and marine installation of the subsea production facilities, depending on the conditions of the pact.

Apart from the above contract wins, the company gained a significant subsea contract from oil major Petrobras S.A. (PBR - Free Report) for the Búzios 6-9 fields located in the Santos Basin offshore Brazil. Per the terms of the deal, the company will provide subsea trees with controls, electrical and hydraulic distribution units, topside systems as well as installation and intervention support with rental tools.

Brief on the Company

TechnipFMC is a leading manufacturer and supplier of products, services and fully-integrated technology solutions to the energy industry. The company, formed from the January 2017 merger of Technip and FMC Technologies, is engaged in designing, producing and servicing technologically-sophisticated systems and products for subsea, onshore/offshore and surface projects.

Zacks Rank & Key Pick

TechnipFMC currently has a Zacks Rank #3 (Hold). A better-ranked stock in the energy space is Oasis Petroleum Inc. (OAS - Free Report) , presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.